Introduction and challenges
The strategy of the procurement function must above all be designed to support the company’s strategy. Therefore, the primary role of Procurement Directors or Chief Procurement Officers is to build and implement a strategic plan that is coherent with, and contributes to, the company’s business plan. This strategic plan is based on a vision, associated objectives and all the resources necessary to achieve the strategy. It must also clearly address the procurement function’s offer of services to its internal clients, and to its suppliers.
A procurement strategy is generally characterized by a formal document describing an ambition with three-year objectives, the major challenges to achieving this target, the strategic transformation areas in the form of a roadmap, and the associated impact on the organization, the key competencies, the processes and the digital tools. This strategy will have to be validated by the major internal customers; members of the management committee.
In a more operational way, this procurement strategy will ultimately be a strong input for the policies specific to each of the commodities or categories managed.
How we can help
Argon & Co helps Procurement Directors of large manufacturing or service groups to create or rethink their strategy in diverse contexts:
- Redesign the group’s procurement strategy in the context of a market downturn
- Create a group procurement strategy when creating the corporate procurement function
- Review the procurement strategy following a merger
- Accompany the first 100 days of a CPO